USA How to account for jewelry design fee?

[lc2020]

the jewelry company paid someone to design jewelry and then create mold and use the mold to produce jewelries.
the design and mold are owned by the jewelry company.
How should the jewelry company account for the jewelry design fee? Can it add the design fee to fixed assets account or intangible assets account?
Thank you!

 

[Fidget]

Depends what the design fee is made up of. Some, or even all of it, might qualify as being research, in which case it needs to be written off as incurred, but if some, or all of it, qualifies as development, then it can be added to the cost of the mold and capitalised.

 

[lc2020]

Depends what the design fee is made up of. Some, or even all of it, might qualify as being research, in which case it needs to be written off as incurred, but if some, or all of it, qualifies as development, then it can be added to the cost of the mold and capitalised.

Thank you for your response!